The cryptocurrency exchange platform Coinbase (NASDAQ: COIN) is heading back to court after a federal appeals court in the US decided that the judge who dismissed the case in December 2021 was incorrect in his ruling.
Coinbase Court Case Back on the Cards
They based this decision on the fact that the judge had used the December 2021 user agreement, but that didn’t take into account the fact that earlier versions had used different language in some sections.
The full title of the case is Louis Oberlander v. Coinbase Global Inc., 23-cv-184, US Court of Appeals (2nd Circuit). It dates back to the 2021 consumer lawsuit against Coinbase, in which the platform is accused of helping customers buy and sell unregistered securities.
While the case seemed to have ended with that earlier decision to dismiss it, three judges on the appeals panel have now revived it by sending it back to the district court to see which version of the user agreement needs to be used to make a final decision.
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They also upheld the earlier decision to dismiss some of the claims against Coinbase where customers had sought to get transactions rescinded. Paul Grewal is Coinbase’s chief legal officer, and he posted on X that:
There’s no private liability for the secondary trading of digital assets on exchanges like Coinbase.
He added that the reason for this is that contracts matter.
Lawyers for the customers who raised the lawsuit said they were grateful for the latest decision and keen to resume the case.
